Carbon credit futures price down
Last Updated : 7/28/2008 5:01:30 AM
Source : Hindu Business Line, India
Email
|
Print
|
Post a comment |
Bookmark
|
A slight fall in crude oil prices pulled down carbon credit futures by 2.36 per cent on NCDEX counter in early trade on Wednesday. At 1100 hrs, December delivery of carbon credits, traded as Carbon Emission Reduction (CER) stood at Rs. 1,253 per CER. CER is the tradable unit, which is equal to one tonne of carbon dioxide equivalent, resulting from a Clean Development Mechanism (CDM) project. "Fall in crude prices affected carbon credits today. Otherwise, the rally in domestic prices is not followed by global price movement,'' Karvy Comtrade Analyst Bhavana Glory told PTI. She further said, "The prices internationally have not moved significantly as we have seen here.'' December futures have surged by over 24 per cent since the launch of the contract on April 10.
Globally, oil prices fell below $130 a barrel to touch one-week low in New York on speculation that record fuel prices would reduce demand during the US driving season, an oil experts said. Oil prices were also under pressure after the US dollar gained g round against the Euro.
In London, July Brent crude futures fell $4.06 to $128.31 a barrel on the ICE futures exchange, while light sweet crude for July delivery fell $3.34 at $128.85 a barrel on the New York Mercantile Exchange.
CER are carbon credits issued by the CDM executive board for emission reductions achieved by CDM projects and verified under the rules of the Kyoto Protocol. A total of 295 Indian companies have registered with CDM for carbon credit trading. India is the second largest seller of carbon credits in the global market with six per cent share in 2007.
|
